As the US presidential election approaches, with the primaries underway and the polls scheduled for November 5, 2024, tariffs on Chinese imports have become a significant point of discussion. The conversation has intensified following comments from Republican frontrunner and former President Donald Trump, who has been vocal about imposing high tariffs on goods from China.
In a recent Fox News interview, Trump stated, “I’m not looking to hurt China. I want to get along with China. I think it’s great. But they’ve really taken advantage of our country.” He also hinted at potentially imposing tariffs higher than 60% on imports from China, reflecting his ongoing commitment to the “America First” trade policy he championed during his previous tenure.
This rhetoric comes in the context of a trade war that began in March 2018 when the Trump administration imposed 25% tariffs on steel imports and 10% on aluminum, prompting China to retaliate with tariffs of up to 25% on over 100 US products.
As the election nears, and with Trump emerging as the last Republican candidate despite facing several criminal cases, global logistics companies are reportedly planning for the potential of increased tariffs. CNBC noted that many businesses importing goods to the US from China are considering alternatives, including shifting parts of their supply chain to Mexico.
Beth Whited, president of Union Pacific, mentioned to CNBC the growing trend of nearshoring—moving supply chain operations closer to the US. She highlighted Mexico’s strategic role and the opportunities it presents for businesses aiming to mitigate tariff impacts. Paul Brashier, vice president of drayage and intermodal at ITS Logistics, also emphasized the potential of Mexico as a key hub in navigating future trade policies.
This strategic shift is underscored by Maersk’s recent establishment of a new 323,000 square foot facility in Tijuana, Mexico, recognizing the city’s vital role in trade between the US and Mexico. According to the US Census Bureau and the US Bureau of Economic Analysis, Mexico surpassed China as the largest importer to the US in 2023, with imports totaling $475.6 billion, reflecting a significant shift in trade dynamics.
As the presidential election draws closer, the focus on international trade policies and their implications for global supply chains is likely to intensify, with stakeholders closely monitoring developments between the US and China, two of the world’s largest economies.
